Live Direct Debit rates for UK average since 1 October 2026. Typical home: 9,500 kWh of gas a year.
The short answer
For a home using Ofgem's typical 9,500 kWh of gas a year, a modern gas boiler costs about £865 a year including the gas standing charge. The same warmth from a heat pump costs about £759 a year, assuming the efficiency found in real UK homes and no gas account.
That's a saving of a little over £100 a year with today's prices, and most of it is the gas standing charge you'd no longer pay. Use the heating cost calculator with your own gas use for a personal figure.
The maths behind it
Gas costs 7.97p per kWh and electricity 26.32p, so electricity is roughly three times dearer. But the two systems turn energy into heat very differently:
- Gas boiler: modern condensing boilers convert about 85% of the gas into useful heat in real homes, according to a government field study. So each kWh of heat costs about 9.4p.
- Heat pump: the UK's Electrification of Heat trial found air source heat pumps produced a median of 2.8 units of heat for every unit of electricity. So each kWh of heat costs about 9.4p.
Per unit of heat, the two are close. That's why the gas standing charge and installation quality matter so much.
| Efficiency | Cost per kWh of heat | Typical home, per year |
|---|---|---|
| Gas boiler (85%) | 9.4p | £865 |
| Heat pump, efficiency 2.8 (trial median) | 9.4p | £759 |
| Heat pump, efficiency 3.5 (well-designed) | 7.5p | £607 |
| Electric heaters (100%) | 26.32p | £2,125 |
What makes a heat pump cheaper
- A good installation. Correctly sized radiators and low flow temperatures push efficiency up. At an efficiency of 3.5, the yearly cost falls to about £607.
- A heat pump tariff. Several suppliers offer cheaper electricity at set times for homes with heat pumps.
- Closing your gas account. That saves the gas standing charge of 29.68p a day, about £108 a year.
Cold weather
Heat pumps are less efficient when it's very cold, but not dramatically. The same trial found a median efficiency of 2.44 on the coldest days, with temperatures down to about −6°C.
Don't forget the upfront cost
Running costs are only part of the picture. In England and Wales, the Boiler Upgrade Scheme gives £7,500 towards a heat pump, which can make the total cost comparable to replacing a boiler.
Sources: Energy Systems Catapult (Electrification of Heat), Government in-situ boiler study, Ofgem typical consumption values, Ofgem price cap via Uswitch, Octopus Energy tariff data.